“China… across the board… is preparing for something big in currency markets.”
This October may see the beginning of the end for the U.S. dollar as the world’s reserve currency. Twice every decade the International Monetary Fund meets to discuss their Special Drawing Rights (SDR) currency basket. Currently comprised of the dollar, Japanese Yen, British Pound and Euro, if China has their way a few months from now, we may well see the Chinese Yuan take its place among the world’s most trusted currencies.
U.S. Treasury Secretary Jack Lew says, “China isn’t ready for currency reserve status,” and would certainly like to see the Chinese blocked from entry, preserving the dollar’s status as the world’s go-to currency and primary mechanism of exchange for global international trade.
But while Lew and his predecessors have presided over the largest growth in national debt in world history, the Chinese have been strategically positioning, much like the United States did in the early 1900’s, to not just become the world’s largest economy, but to be the super power of the 21st century.
Forget for a moment what’s being touted by analysts, forecasters, politicians, and financial officials who say China is not ready. Focus instead on the actions being undertaken by China and you’ll understand why Chinese President Hu Jintao says that the dollar is a product of the past.
Excerpted From Future Money Trends:
Already we are seeing China and Russia hoard gold with Chinese demand skyrocketing in the past give year… China is both, the world’s largest gold producer and biggest importer… so not only are they accumulating gold by the truck load, but not one ounce produced is leaving their shore.
China… across the board… is preparing for something big in currency markets.
The world has an unease about the dollar system… President Hu of China said ‘the dollar is a product of the past.’
There was a time when the U.S. dollar was backed by gold. This backing helped to solidify it as a currency that could be trusted on the open market. Today, however, for all intents and purposes, the dollar is backed by absolutely nothing.
It is this weakness that the Chinese aim to exploit and that’s why they have been actively stockpiling thousands of tons of gold in recent years. But this is only part of the story.
In addition to their physical gold holdings, the Chinese have been using a secret gold accumulation strategy that no one is talking about :
The headlines for gold these past few years have only focused on physical gold accumulation by China, Russia and Eastern central banks. But what they have missed is a 7,000 year-old strategy that China is doubling down on.
According to data compiled by Bloomberg, in 2013 asset purchases by Hong Kong and [Chinese] mainland miners increased to a record $2.2 billion.
China is buying gold mines at a record… something completely missed by both, the mainstream investor and even the gold analysts who tend to only focus on the bullion sales, which haven’t been disclosed officially since 2009.
Although, according to Bloomberg, based on trade data the physical bullion stockpile has likely tripled since then.
China, who is aggressively buying gold, would spark an event if it disclosed how much gold it has stockpiled.
But imagine the true disclosure when you add up all their deposits… not just in China, but offshore. $2.2 billion is equivalent to 46 metric tons of physical gold… but when buying gold deposits in the ground this could be upwards of 5,000 metric tons.
And that is just one year of record mine buying from China.
It’s been rumored that China may disclose those gold holdings ahead of the IMF’s decision this October in an effort to prove to the world that their currency is not only worthy of admission into the SDR basket, but that it is more trustworthy than the U.S. dollar itself.
The winds of change are blowing and the Chinese will soon be taking the helm of the global economy. They know a major event is coming and they have been preparing for it by acquiring the one asset that has survived the test of time as a mechanism of exchange.
For those desperately trying to figure out where they should be putting their money before the next major market event takes shape, consider following their strategy.
...so not only are they accumulating gold by the truck load, but not one ounce produced is leaving their shore.
I have Chinese Pandas, one of the most beautiful gold coins out there, and they're readily available in the open market.
Never discount what the Chinese will be able to do around the world without firing a shot.
They seem to be much smarter than we.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Societies don't endure for 3000+ years by being dumb. And in case one wants to compare with ancient Egypt, they were in far worse shape at the end of 3k years than China is now.
I would even venture that if there is any nation that history revolves around it is China. They still have a lot of potential ahead of them.
John Howard says: There are 4 schools of economics: Marxism: steal everything Keynesianism: steal by counterfeiting whenever needed Chicago school (Milton Friedman): steal by counterfeiting at a steady, predictable rate Austrians: don't steal
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
“With the exception of Whites, the rule among the peoples of the world, whether residing in their homelands or settled in Western democracies, is ethnocentrism and moral particularism: they stick together and good means what is good for their ethnic group." -Alex Kurtagic
Already we are seeing China and Russia hoard gold with Chinese demand skyrocketing in the past give year… China is both, the world’s largest gold producer and biggest importer… so not only are they accumulating gold by the truck load, but not one ounce produced is leaving their shore
Well, we've become the world's biggest importer of wetbacks! Ain't nobody gonna take our market share of that 'commodity'!!!
“With the exception of Whites, the rule among the peoples of the world, whether residing in their homelands or settled in Western democracies, is ethnocentrism and moral particularism: they stick together and good means what is good for their ethnic group." -Alex Kurtagic
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
My thought is that BRICS can take US down without firing a shot.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Actually the dollar is backed by, perhaps next to Germany, the world's best technology, equipment, and trained manpower to get done whatever is needed, which of course is better than gold. However, China is doing its best to catch up.
Tianjin University professor arrested in US for stealing mobile phone tech
Six Chinese citizens including professors from Tianjin University have been charged by the US Department of Justice on May 19 for stealing mobile phone technology used in military systems, according to Reuters.
Among them, Zhang Hao, one of the professor was arrested immediately on entering the United States on May 16. The other five suspects are still believed to be in China, an official from the Justice Department said. Zhang and his two colleagues were charged with stealing stealing source code and other proprietary information from chipmakers Avago Technologies and Skyworks Solutions, where two of them previously worked.
With the technology they stole from the US firms, Zhang and the others established a company called ROFS Microsystems in Tianjian according to the prosecutors. The Chinese government has reportedly stated its support for the six suspects. They will face charges including economic espionage, theft of trade secrets and various conspiracy counts. If convicted, they may be sentenced to between 10 and 15 years in prison plus fines.
Hong Lei, the spokesperson of the Chinese foreign ministry discussed the incident in a daily press briefing held in Beijing on May 20. "The Chinese government firmly opposes and combats theft of trade secrets, in accordance with law," said Hong. "As for this case, we are still checking on the details." During the event, Hong said that the Chinese government will defend the rights of its citizens abroad, according to state-run Xinhua.
